Income Taxes

3 Months Ended

Sep. 30, 2012

Income Taxes

Note 10 – Income Taxes

Our provision for income taxes is based on an estimated annual tax rate for the year applied to federal, state and foreign income. Income tax expense for the three months ended September 30, 2012 and 2011 was $17.2 million and $14.9 million, respectively. The effective tax rate for the three months ended September 30, 2012 and 2011 was 24.0 percent, and 23.5 percent, respectively. The change in the effective tax rate for the three months ended September 30, 2012 compared to same period in the prior year, was primarily due to higher income in the United States that is subject to a tax rate greater than our key foreign jurisdictions.

During the three months ended September 30, 2012 we recorded tax reserves and interest on uncertain tax positions in the amount of $0.9 million and $0.1 million, respectively, all of which would affect the tax rate if recognized.